Analyzing the effect of dynamically assigned treatments using duration models, binary treatment models, and panel data models

An Erratum to this article was published on 27 February 2017

Abstract.

Often, the moment of a treatment and the moment at which the outcome of interest occurs are realizations of stochastic processes with dependent unobserved determinants. Notably, both treatment and outcome are characterized by the moment they occur. In this paper, we compare different methods of inference of the treatment effect. We argue that the timing of the treatment relative to the outcome conveys useful information on the treatment effect, which is discarded in binary treatment frameworks.

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Correspondence to Jaap H. Abbring.

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Thanks to participants at the Tenth Panel Data Conference in Berlin, 2002, in particular to our discussant Bo Honoré, for helpful comments. Jaap Abbring acknowledges financial support by the Royal Netherlands Academy of Arts and Sciences.

An erratum to this article is available at http://dx.doi.org/10.1007/s00181-016-1226-x.

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Abbring, J., Berg, G. Analyzing the effect of dynamically assigned treatments using duration models, binary treatment models, and panel data models. Empirical Economics 29, 5–20 (2004). https://doi.org/10.1007/s00181-003-0188-y

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Keywords

  • Program evaluation
  • treatment effects
  • timing-of-events method
  • bivariate duration analysis
  • selection bias

JEL classification

  • C14
  • C31
  • C41